Australia Consumer Sentiment Suffers Surprise Dip in December

Tuesday, 11 Dec 2012 | 9:08 PM ETReuters

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A measure of Australian consumer confidence pulled back in December as households fretted on the outlook for the economy and finances, ending three months of improvement and adding to the case for further cuts in interest rates.

The poll of 1,200 people by the Melbourne Institute and Westpac Bank showed its index of consumer sentiment fell 4.1 percent in December to 100.00, unwinding much of November's 5.2 percent increase.

On December last year, the index was still up 5.6 percent.

"This is a very surprising result," said Westpac chief economist Bill Evans. "It was reasonable to expect that the Index would respond quite positively to the rate cut the Reserve Bank delivered last week."